Internal Assessment Test On Strategic Management, July 2016

Cultural values are a part of the social factor in the macro environment. Social factors include the beliefs, attitudes, and values of a society, which influence consumer behavior and preferences. Cultural values refer to the shared beliefs and norms that shape the behavior and preferences of individuals within a particular culture. Therefore, cultural values are an integral part of the social factor in the macro environment.

The STARS symbolize the products or business units that are in a high-growth market and have a high market share. These are the entities that have the potential to generate substantial profits and become market leaders in the future. They require heavy investment to maintain their growth and market dominance. Therefore, the STARS category represents the growth aspect in the BCG Matrix.

The bargaining power of union is not part of Porter's competitive forces in industry analysis. Porter's five forces framework includes the potential entry of new competitors, bargaining power of suppliers, bargaining power of buyers, threat of substitute products or services, and intensity of competitive rivalry. The bargaining power of union relates to labor relations and is not typically considered as a competitive force that affects industry analysis.

A capability can provide a sustained competitive advantage if it is aligned with the organization's value proposition, meaning it supports and enhances the unique value that the organization offers to its customers. Additionally, the capability must be difficult for competitors to imitate, ensuring that the organization maintains a unique advantage in the market. Lastly, the capability must be durable over time, meaning it can withstand changes in the market and continue to provide a competitive advantage in the long run. Therefore, all of the given options are necessary for a capability to provide a sustained competitive advantage.

The benefit of "new top management for the organization" is not a benefit of strategic management. Strategic management focuses on developing a sense of strategic vision, a sharper focus on what is strategically important, and an understanding of the turbulent environment. However, the concept of bringing in new top management is not specifically related to strategic management.

C. K. Prahalad is the Indian Management Guru who made the contributions of "Core Competence," "The Future of Competition: Co-creating Unique Value with Customers," and "The Fortune at the Bottom of the Pyramid: Eradicating Poverty through Profits."

A vision statement outlines the desired future state or goals of an organization, answering the question "What do we want to become?" On the other hand, a mission statement defines the purpose and activities of the organization, answering the question "What is our business?" Therefore, the correct answer is vision statement; mission statement.

DMAIC is an approach for quality improvement in Six Sigma. Six Sigma is a methodology used to improve business processes and reduce defects. DMAIC is a structured problem-solving approach that stands for Define, Measure, Analyse, Improve, and Control. It is used within the Six Sigma framework to identify and eliminate defects, improve process efficiency, and ultimately enhance overall quality.

Knowledge Management refers to the process of capturing both explicit factual information and tacit knowledge within an organization. It involves utilizing the experience and learning of individual employees to advance the organization's mission. This includes storing, organizing, and sharing knowledge to enhance decision-making, problem-solving, and innovation. Knowledge Management aims to improve the efficiency and effectiveness of an organization by leveraging its intellectual capital.

Effective strategic leadership involves various roles and responsibilities. Emphasizing ethical decisions and practices is an important aspect of strategic leadership as it ensures that the organization operates ethically and maintains its reputation. Establishing appropriately balanced controls is crucial for effective strategic leadership as it helps in managing risks and ensuring the achievement of organizational objectives. Exploiting and maintaining core competencies is another key role of strategic leadership as it involves leveraging the organization's strengths and competitive advantages. However, checking inventory management is not directly related to strategic leadership. While it is important for operational efficiency, it does not fall under the purview of strategic leadership.

The establishment of objectives is a top-management activity because it involves setting the overall goals and direction for the organization. Top management is responsible for defining the strategic objectives that guide the entire organization and align with its mission and vision. They have the authority and perspective to make decisions that impact the organization as a whole and set the direction for lower levels of management. By establishing objectives, top management provides a clear focus and direction for the entire organization to work towards.

The correct answer is "Valuable, Rare, Inimitable and Non-substitutable". VRIN analysis is a framework used to assess a firm's resources or capabilities for sustainable competitive advantage. The parameters considered in VRIN analysis are valuable (resources or capabilities that add value to the firm), rare (resources or capabilities that are not easily found in the industry), inimitable (resources or capabilities that are difficult to replicate), and non-substitutable (resources or capabilities that have no equivalent substitutes). These four parameters are important in determining whether a firm's resources or capabilities can provide a sustained competitive advantage.

Generic strategies refer to the broad categories of business strategies that companies can adopt to gain a competitive advantage in the market. These strategies include low cost, differentiation, and focus. Low cost strategy focuses on offering products or services at a lower price than competitors, differentiation strategy focuses on offering unique and superior products or services, and focus strategy focuses on targeting a specific market segment or niche. These generic strategies help companies define their overall approach to compete and succeed in the market.

IT Strategy is the correct answer because it focuses on the goals, theories, and planning related to the application of information and technical knowledge within an organization. This strategy involves the use of technology to achieve business objectives, improve efficiency, and gain a competitive advantage. It encompasses the development, implementation, and management of IT systems, infrastructure, and processes to support the overall organizational goals and objectives. IT Strategy ensures that technology is aligned with the business strategy and enables the organization to effectively use information and technology resources to drive growth and success.

The board of directors plays a significant role in corporate governance. Corporate governance refers to the system of rules, practices, and processes by which a company is directed and controlled. The board of directors is responsible for overseeing the company's management and ensuring that it acts in the best interest of shareholders and stakeholders. They set strategic objectives, monitor performance, and make important decisions. Therefore, the statement that the board of directors plays a significant role in corporate governance is the correct answer.

Competitive advantage refers to the unique qualities, strategies, or resources that differentiate an organization from its competitors and enable it to outperform them in the market. It encompasses a combination of factors such as unique products or services, superior customer experience, innovative technology, efficient operations, and effective marketing. By setting an organization apart from its competitors, competitive advantage allows it to attract customers, generate higher sales, and ultimately achieve long-term success in the marketplace.

Strategy implementation involves careful formulation of programmes, budgets, policies, procedures, and rules. These elements are crucial in translating strategic plans into actionable steps. Programmes outline specific initiatives and projects that need to be executed. Budgets allocate resources and funding to support these initiatives. Policies provide guidelines and principles for decision-making and behavior. Procedures outline the step-by-step processes and actions required to achieve objectives. Rules establish boundaries and guidelines for behavior and actions within the organization. Collectively, these elements ensure that the strategy is effectively executed and goals are achieved.

Organizational ethics refers to the moral values, beliefs, and rules that guide the behavior and decision-making of an organization and its members. It encompasses the appropriate way for the organization and its members to interact with each other and with people outside the organization. This includes principles such as honesty, integrity, fairness, and respect. Organizational ethics helps to establish a positive and ethical culture within the organization, ensuring that all members adhere to ethical standards in their actions and decision-making processes.

The correct answer is "Learning & Growth, Business Processes, Customers and Finance". The Balanced Scorecard is a management technique that focuses on these four areas and analyzes them to measure the overall performance of an organization. Learning & Growth refers to the organization's ability to develop and improve its employees' skills and knowledge. Business Processes involve evaluating the efficiency and effectiveness of the organization's internal processes. Customers are assessed based on their satisfaction and loyalty towards the organization. Finance measures the financial performance and viability of the organization. By analyzing these four areas, the Balanced Scorecard provides a comprehensive view of the organization's performance and helps in making strategic decisions.

Strategic Implementation Control involves several key components: Premise Control, which involves ensuring that the organization's underlying assumptions and premises are accurate and aligned with its strategic goals; Strategic Surveillance, which involves monitoring and analyzing the external environment to identify potential opportunities and threats; Implementation Control, which involves monitoring and managing the progress and execution of strategic initiatives; and Special Alert Control, which involves quickly identifying and responding to unexpected events or changes that may impact the organization's strategic implementation.